Despite the volatility that the price of Bitcoin has experienced in 2024, Henley & Partners' The Crypto Wealth Report reports that Bitcoin millionaires have experienced a growth of 111% in the last 12 months.
The price of Bitcoin has grown by 120% since November 2023, and the number of Bitcoin millionaires has grown with it.
According to data published by Henley & Partners in its annual report on Bitcoin and cryptocurrency wealth, People with $1 million in Bitcoin holdings have doubled since 2023, increasing to a total of 85.400 holders currently.
The firm's report revealed that in the last year, 44.900 people have become millionaires thanks to their BTC holdings. It also highlighted that Of the 28 people currently classified as cryptocurrency billionaires, 11 owe it to BitcoinOf these 11 people, 5 are billionaires who made their fortune with the market-leading cryptocurrency in the last 12 months.
Source: The Crypto Wealth Report 2024 – Henley & Partners
Henley & Partners highlighted that this growth in the number of Bitcoin and cryptocurrency millionaires, centimillionaires and billionaires was driven by the arrival of cryptocurrency spot ETFs in the world's most important financial markets, such as the United States and Hong Kong. The firm also underlined that the growing importance, popularity and adoption of cryptocurrencies is accelerating the transformation of wealth creation, marking a new path at the intersection with traditional finance.
Bitcoin ETFs drive growth in crypto wealth
Henley & Partners' annual report highlighted that much of this growth in cryptocurrency wealth is due to the introduction of cryptocurrency exchange-traded funds into mainstream financial markets.
Dominic Volek, head of Henley & Partners' private client group, stressed that the arrival of these exchange-traded funds has facilitated the entry of significant institutional capital into the cryptocurrency market. He explained that this trend has changed the perception of cryptocurrencies, leading them to be considered legitimate assets within investment portfolios.
The adoption of Bitcoin and Ethereum ETFs in the United States has marked a turning point in the investment market. Institutions can now invest in cryptocurrencies in a more structured and regulated manner, which has led to an increase in investor confidence, resulting in an exponential growth in the number of crypto millionaires. According to Henley & Partners, the approval of these spot ETFs has created a domino effect in the market. Individual investors, driven by growing institutional interest, have also begun to diversify their portfolios, increasing the demand for Bitcoin and other cryptocurrencies and, with it, their growth potential.
Source: CoinMarketCap
The firm also highlighted that with a total market value of all cryptocurrencies of $2,3 trillion, the financial landscape has changed dramatically compared to the previous year, when the value of crypto assets was around $1,2 trillion.
Cryptocurrencies transform the paradigms of wealth creation
Henley & Partners experts agree that Bitcoin and cryptocurrencies are transforming the paradigms of wealth creation. In the past, wealth was generated primarily through traditional assets such as property and stocks. However, today, Wealth growth is increasingly linked to cryptocurrencies, especially Bitcoin and Ethereum, they said in the report.
Andrew Amoils of New World Wealth commented that the rapid appreciation of digital assets in the market, despite their short history, has allowed many investors to earn surprising returns, even with relatively small initial investments, highlighting that most new millionaires have emerged thanks to cryptocurrency investments.
On the other hand, the growing popularity of cryptocurrencies has also led to a surge in the creation of new financial products, as well as the integration of cryptocurrencies into various applications, ranging from decentralized finance (DeFi) platforms to non-fungible token (NFT) protocols. All of these products and applications have allowed investors to diversify their portfolios in ways that were not previously possible.
In summary, Henley & Partners’ The Crypto Wealth Report 2024 reveals a fascinating picture for the growth of Bitcoin and cryptocurrency millionaires.
With a 111% increase in the number of Bitcoin millionaires and the impact of ETFs on cryptocurrency wealth, the market is undergoing an unprecedented transformation. The firm believes that as cryptocurrencies continue to challenge traditional investment norms, they could redefine wealth creation in the XNUMXst century.
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